Hello,
I have a similar situation that I'm not has the same answer you provided to the question you answered...
I was laid off and asked to sign separation agreement including terms that I believed were not fair for the settlement they were offering. I retained counsel, and a settlement was reached. A portion of my settlement was (per the finalized agreement language) paid directly to my attorney from my employer for his legal fees. Both the attorney and I received a 1099 for the payment amount.
The 1099-MISC I received from my employer has the payment amount (again, which was not paid to me) classified in Box 1 "Rent". As I have tried to record this "income" using that classification, TurboTax prompts me to fill out Sched C rental info (which has nothing to do with this "income"). I don't want to make something up.
Can I enter the amount in TurboTax in 1009-MISC Box 10 "Gross attorney's fees"? Seems that either option
Also, can input that amount elsewhere as a deductible expense? (since the funds never came to me)
Any advice is appreciated. Failing that, what is best path to someone who can assist?
- David
